- Mozambique | 7 October 2020
What is the background and history of Galileo Technologies?
Galileo Technologies originated in Argentina during the 1980s when it introduced compressed natural gas (CNG) and played a pivotal role in promoting its widespread adoption. Leveraging its expertise in designing and manufacturing gas reciprocating compressors, Galileo expanded its operations to encompass the upstream and midstream oil and gas sectors, offering a comprehensive range of compressor packages. The company also introduced the concept of the Virtual Pipeline, which involves transporting compressed gas in cylinders via trucks. Today, this solution is widely utilized globally, but it originated from Galileo Technologies in Argentina.
Could you provide more information about Galileo’s significant milestones in recent years?
Over the past 15 years, Galileo Technologies achieved a major milestone by creating the Cryobox LNG production stations. This revolutionary technology enables the liquefaction of natural gas from any source. The Cryobox units are housed within a 40-feet container, requiring minimal space and no civil works. This plug-and-play solution can commence production in just six months, whereas traditional mid-scale LNG plants typically take a minimum of two years. Moreover, the Cryobox technology is modular and scalable, enabling businesses to start at a small scale to meet initial demands and then expand gradually as their operations grow. This innovative approach, fully developed by Galileo Technologies, has transformed the industry.
How has the Cryobox solution expanded internationally?
The first Cryobox unit was installed in Argentina in 2013 for bunkering operations. Subsequently, Galileo deployed a plant in North Dakota, where a client utilized LNG for drilling and fracking activities. Notably, the client capitalized on flare gas, previously considered waste both environmentally and economically, and converted it into LNG. Galileo Technologies further expanded its Cryobox solutions to Australia, Colombia, and Argentina. In 2016, the Cryobox machines evolved from stationary electric-powered units to Cryobox-trailers, equipped with gas-powered engines, enabling easy transportation to different locations. This development aligned perfectly with the requirements of shale gas operations, where wells have shorter lifespans compared to conventional wells.
In North America, Galileo operates EDGE LNG, a midstream company that offers services to oil and gas operations in the Permian, Bakken, and Marcellus formations. EDGE LNG converts flare gas or gas from non-productive wells into fuel for drilling or fracking activities. The technology also finds applications in enhanced oil recovery (EOR), where LNG is reinjected into wells to increase pressure, maximize oil production, and store gas. Galileo Technologies aims to replicate this successful model in Africa.
What have been the outcomes of Galileo’s sales efforts in Africa so far?
Galileo Technologies’ compressors have been deployed in various African countries, including South Africa, Mozambique, Nigeria, and Cameroon. Recently, the company sold a gas-lift compressor package to Pluspetrol in Angola. This gas-lift unit functions as a field compressor, elevating pressure from 2 bar to 14 bar, with the reinjected gas stimulating oil production. This installation marks an initial step, and Galileo anticipates installing additional units with Pluspetrol in the future. Furthermore, there is significant potential in Angola due to the escalating prices of diesel, prompting companies to seek alternative, cost-effective gas-based solutions. Galileo is prepared to develop the LNG distributed production model in Angola to meet the country’s evolving energy needs.
Nigeria is another crucial market for Galileo, given the government’s “Nigerian Flare Gas Commercialization Programme.” Several companies have expressed interest in monetizing flare gas in the country, and Galileo’s technology will be utilized for liquefying and distributing the gas. By 2020, Galileo anticipates installing a minimum of 14 units in the Niger Delta region.
How well-positioned is Galileo Technologies to capitalize on market opportunities in Africa with the support of Blue Water Energy?
Blue Water Energy, a British group, is one of Galileo Technologies’ primary stakeholders, providing valuable support and capital for expanding the business model. Previously, Galileo primarily focused on equipment sales, which posed challenges when targeting clients unfamiliar with the technology. However, with Blue Water Energy’s support, Galileo can now offer a turnkey solution, encompassing compression, liquefaction, and direct sale of the gas molecule, connecting methane sources to consumers. Galileo Technologies has successfully implemented this model in Argentina, Brazil, Colombia, the United States, and Europe, and is eager to replicate this success in Africa.
What are the growth prospects for Galileo Technologies in Africa?
Africa represents a significant market opportunity for Galileo Technologies, particularly in West Africa, where addressing flare gas remains a major challenge alongside substantial infrastructure deficits. Just two decades ago, the notion of establishing an off-grid natural gas network in Africa seemed implausible. However, with Galileo’s innovative and efficient Cryobox and Virtual Pipeline technologies, Africa can now construct such networks. This solution is well-suited for both large-scale gas-producing countries and others, such as South Africa, which are exploring gas imports or seeking to monetize small gas fields. Galileo Technologies firmly believes that its technology is a perfect fit for Africa’s evolving energy landscape.